Petrobras' new five-year bonds fall slightly after completing sale

SAO PAULO, May 17 (Reuters) - Five-year bonds in state-controlled Petróleo Brasileiro SA fell before they were officially sold on Tuesday, after the debt-laden Brazilian oil producer clinched a bigger-than-expected $5 billion sale of the securities, traders said.

The company’s five-year bond fell as much as 0.2 percentage point in the so-called gray market, where investors trade them on a when-issued basis. Petrobras, as the Rio de Janeiro-based company is broadly known, also sold $1.75 billion in 10-year bonds at 9 percent, a source with direct knowledge of the deal told Reuters.